The Ghana Revenue Authority (GRA) is stepping up its enforcement efforts to ensure businesses comply with tax laws. As part of this, the GRA has invited the managers of 11 companies in East Legon for investigations regarding non-issuance and selective issuance of VAT receipts.
The manager of Han Sen Decor City at East Legon was arrested for selectively issuing VAT invoices to clients. Operators of another shop at Bawaleshie are alleged to have closed their shop after getting wind of the GRA's special VAT enforcement exercise in the area.
Joseph Annan, Manager of the Accra Central Enforcement Unit of the GRA, said the enforcement exercise has led to the arrest and clamping down of non-compliant VAT businesses in Accra. The operation will continue till full compliance is achieved.
During the enforcement exercise, the GRA taskforce visited 12 businesses in East Legon, including Han Sen Decor City. All suppliers of taxable goods and services are required by law to issue VAT invoices, while customers must obtain invoices for transactions that attract VAT. Failure to issue VAT invoices to customers is a violation of the tax law.
Annan explained that the business owners had been invited because they were not present when the GRA team visited. The shops were found to have clearly violated the law. "We will conduct pre-emptive assessments and recommend cases for full audit. Then the Criminal Investigations Department of the Ghana Police Service will continue investigations and our legal unit will take legal actions to prosecute culpable businesses," he said.
Regarding the shop that allegedly closed upon a tip off, Annan said "when you run away from us, then you continue to run. If you run, you have just postponed your predicament. Unless you make sure things are done right before we come after you".
The GRA has set a revenue target of GH¢106 billion for 2023, with Customs expected to collect GH¢28.5 billion. The authority has identified 93 businesses across Accra as enforcement targets. Annan said GRA will continue implementing tax policy initiatives to boost revenue, including Electronic VAT, Electronic Tax Clearance Certificate, upfront payment on imported goods, excise tax stamp and resumption of vehicle income tax payment.
Other revenue mobilization efforts include the ongoing e-VAT invigilation exercise, test purchases and mystery shopping exercises. Annan warned businesses that selective issuance of VAT receipts is a serious violation and those caught will be investigated, assessed for taxes owed, audited by police and prosecuted legally. He urged businesses to comply fully with tax laws to avoid facing enforcement action from the GRA.
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